3, 2, 1,
let me do that. Right. I don't know if I got it there. Well, we'll do it again. The timing a little off, not perfect. This time. Three, two, one. What do they call that? That's like the clapboard or. They doing the movies.
I doing friends Ernie here, and this is the zero days to expiration podcast, episode number 65. And today's episode. We're going to talk about the difference between different lengths of days to expiration. Of course we're zero days to expiration, but there is some talk out there about doing, you know, one day DTE or two DTE or four DTE, which is better.
What is better? Is it better to put your trade on four days prior to expiration or is it better to do it on the very last day and why even bother? We'll also talk about the difference between. Entering your trade using the SPX or IES futures. Now, of course, the premise of the zero D T E trade or doing any kind of end of day expiration is using a derivative of either the S and P or the NASDAQ, because those are the two indexes that have three expirations.
Right. They have three expirations per week, which is fantastic because of the zero DTE part that gives us this incredible edge. That's where we find alpha in being there on that Larry very last day of expiration. Of course, when you're doing for DTE, you're not there. You're somewhere else. You're somewhere in the.
Distant future or past. You're not there yet. You don't know what the hell's going to happen in four days when you get to that zero DTE. All right. I'm skipping ahead here a little bit. So we're going to talk about the difference between the SPX, which is the index on the S and P and the E-mini S and P futures.
A lot of people know it as the base symbol E S. Now I had also mentioned that you can do this on NASDAQ futures and the NASDAQ index or the N QX. I believe that's what that is. And the NQ because they also have three days a week where they expect. Or the option contracts on those particular assets. So which one do you use?
Do you use the SPX? Do you use the E-mini S and P or do you use the NASDAQ? The ND. Excellent. Okay. So that, that's another question. It's a fundamental question. Really? Between indexes and futures, that's where we're really going with. Then the next topic that we're going to take on is the fundamental difference between risk and reward.
Is there a relationship between risk and reward? Do you have control over what your risk to reward is? If you take on very, very little risk or put on a high probability trade, are you absolutely forced into. A certain award. Is there a never inverse relationship? Is there a way to get around the inverse relationship?
These are all fundamental questions. And the reason why I'm bringing all this up is that zero DTE is an event, not necessarily a strategy, but it is an event that many traders and services have now latched onto because it is the Dera gear data. Mantra because there's an air out there. There is a, there's a little birdie out there telling people that there's actually alpha there and there is, there absolutely is however, approaching zero DDE doing it the right way is paramount.